WASHINGTON: After the 2008 financial crisis, economic growth took a tumble, and amid anemic indicators since, charitable giving would be expected to decline. Indeed, after the global recession, giving dipped in the United States. Yet US giving to charities international in scope rose an estimated 15.3 percent in 2010 – the largest percentage increase of all categories, including religion, health or education.
Global giving is an emerging trend, as the internet and social media raise awareness of global needs, reports Giving USA Foundation. Individuals seek global recognition, and companies make strategic moves in emerging markets that provide a lion’s share of revenues. The trend also reveals America’s individualistic streak and near reverence for high-profile donors like former President Bill Clinton or Microsoft mogul Bill Gates who identify and solve problems.
Take Gates for example: The 2010 annual report of the Bill and Melinda Gates Foundation explains that nearly 80 percent of grants were directed to global development and global health, while 15 percent went to US education, libraries and other programs and 4 percent to non-program grants. Of course, contributions for vaccinations, education or stability ultimately benefit all. Likewise, more than 70 percent of 2010 expenses of the William J. Clinton Foundation were directed toward global initiatives.
Such giving runs counter to isolationist trends in the United States, including opposition to foreign aid, support for anti-immigrant legislation, weariness over wars in Iraq and Afghanistan, and fears about outsourcing and ballooning national debt.
Exuberance for giving as opposed to paying taxes reveals deepening mistrust about government’s ability to manage funds and distribute benefits fairly. Instead, donors seek direct control over how their money is used, selecting among recipients who pull heart strings with compelling appeals.
Motivations differ for households and corporations. Research suggests that corporations aim for brand enhancement, new markets and shareholder interests. International giving goes hand in hand with international sales. Topping the list of most generous companies with cash donations, compiled by Forbes magazine and the Chronicle of Philanthropy, is Walmart followed by Goldman Sachs and Wells Fargo. The three corporations gave $319 million, $315 million and $219 million, respectively.
